Emergency Fund Statistics 2026: 16 Facts From the Federal Reserve SHED
Sixty-three percent of U.S. adults could cover a $400 expense with cash or its equivalent in 2025. Sixteen emergency fund statistics from the Federal Reserve SHED, covering the $400 test, rainy-day funds and who has a three-month cushion.
Most adults still fail a simple cash test. In the Federal Reserve’s 2025 Survey of Household Economics and Decisionmaking (SHED), 63% of adults said they would cover a hypothetical $400 expense with cash or its equivalent — unchanged from 2024 and down from 68% in 2021. Only 55% said they had a rainy-day fund for three months of expenses. Here are 16 statistics that show who has a buffer and who does not.
Data as of October 13, 2026. Emergency-savings figures come from the Federal Reserve Board’s Report on the Economic Well-Being of U.S. Households in 2025 (SHED fielded October 2025; report published May 2026), especially the Savings and Investments chapter. National deposit-rate context comes from the FDIC National Rates and Rate Caps for September 2026. Where we subtract or compare published figures, we say so. This page is general information, not financial advice. Some links on Money 8020 are affiliate or partner links; see our advertiser and affiliate disclosure.
Key takeaways
- $400 cash test: 63% of adults would cover $400 with cash or its equivalent (Fed SHED 2025).
- Unable to pay: 12% of adults could not pay $400 by any means.
- Three-month fund: 55% had rainy-day savings for three months of expenses.
- Income gap: 21% of adults with income under $25,000 had a three-month fund, versus 75% at $100,000 or more.
- National savings APY: the FDIC’s September 2026 average savings rate was only 0.37%.
Emergency savings at a glance
| Measure | Value | Source |
|---|---|---|
| Cover $400 with cash or equivalent | 63% | Fed SHED 2025 |
| Would not cover $400 fully with cash/equivalent | 37% | Fed SHED 2025 (100% − 63%) |
| Unable to pay $400 by any means | 12% | Fed SHED 2025 |
| Could handle ≥$500 with savings only | 70% | Fed SHED 2025 (Table 26) |
| Have 3-month rainy day fund | 55% | Fed SHED 2025 |
| Could not cover 3 months by any means | 30% | Fed SHED 2025 |
| FDIC national average savings APY | 0.37% | FDIC, Sep 2026 |
| FDIC national average money market APY | 0.63% | FDIC, Sep 2026 |
The $400 emergency expense test
1. Sixty-three percent would cover $400 with cash or its equivalent
When faced with a hypothetical $400 expense, 63% of adults said they would cover it exclusively using cash, savings, or a credit card paid off at the next statement. The Fed calls that “cash or its equivalent.” The share was unchanged from the past several years.
2. Thirty-seven percent would need another approach
The remainder — 37% (100% minus 63%) — said they would pay by borrowing or selling something, or said they could not cover the expense. The Fed notes that some people in that group may still have $400 in cash and choose to preserve it as a buffer.
3. Twelve percent could not pay $400 by any means
12% of all adults said they would be unable to pay the expense by any means, down slightly from 13% in 2024.
4. Carrying a credit card balance is the most common backup
Among other approaches (respondents could select multiple), 15% of all adults would put the expense on a credit card and pay it off over time, 10% would borrow from a friend or family member, 7% would sell something, 3% would use a bank loan or line of credit, and 2% would use a payday loan, deposit advance or overdraft (Table 25).
| Approach | Percent of all adults |
|---|---|
| Put it on a credit card and pay it off over time | 15% |
| Borrow from a friend or family member | 10% |
| Sell something | 7% |
| Use money from a bank loan or line of credit | 3% |
| Use a payday loan, deposit advance, or overdraft | 2% |
| Would not be able to pay for the expense right now | 12% |
Source: Federal Reserve SHED 2025, Table 25.
5. Seventy percent could handle at least $500 with savings only
Asked the largest emergency expense they could handle right now using only savings, 70% of adults said at least $500. That is higher than the 63% cash-or-equivalent share on the $400 question, which the Fed says suggests some people choose non-cash methods even when savings are available.
6. Eighteen percent could handle less than $100 with savings only
| Largest emergency expense handleable with savings only | Percent |
|---|---|
| Less than $100 | 18% |
| $100–$499 | 12% |
| $500–$999 | 9% |
| $1,000–$1,999 | 11% |
| $2,000–$4,999 | 12% |
| $5,000 or more | 38% |
Source: Federal Reserve SHED 2025, Table 26.
Three-month rainy day funds
7. Fifty-five percent have savings for three months of expenses
In 2025, 55% of adults said they had set aside money for three months of expenses in an emergency savings or rainy day fund — unchanged from 2024 but down from a high of 59% in 2021.
8. Thirty percent could not cover three months by any means
15% of adults said they could cover three months of expenses by borrowing, selling assets or drawing on other savings if they had not set aside a dedicated fund. 30% said they could not cover three months by any of these means.
9. People who finish the month with money left over are far more likely to have a rainy day fund
86% of adults who said they always had money left over at the end of the month had savings to cover three months of expenses, versus 13% of those who never had money left over (figure 25 narrative).
10. Higher-income adults are much more likely to have a three-month fund
| Family income | Share with 3-month rainy day fund |
|---|---|
| Less than $25,000 | 21% |
| $25,000–$49,999 | 39% |
| $50,000–$99,999 | 55% |
| $100,000 or more | 75% |
Source: Federal Reserve SHED 2025, Table 27.
11. Older adults are more likely to have a cushion
| Age | Share with 3-month rainy day fund |
|---|---|
| 18–29 | 37% |
| 30–44 | 49% |
| 45–59 | 55% |
| 60+ | 71% |
Source: Federal Reserve SHED 2025, Table 27. Overall share: 55%.
12. The three preparedness measures are all down from 2021
The Fed highlights that the $400 cash-or-equivalent share, the three-month rainy-day share, and the share of non-retirees who say retirement savings are on track were each down from 2021, even where 2024–2025 readings were flat.
Where emergency cash sits — and what banks pay
13. Fifty-nine percent of adults have a savings, money market or CD account
In Table 28, 59% of adults reported owning a savings or money market account or certificate of deposit. That is the product set most people use for emergency cash, even though ownership alone does not mean the balance covers three months of expenses.
14. The FDIC national average savings rate was only 0.37%
In the FDIC’s September 2026 national rates table, the deposit-weighted national average for savings was 0.37%, versus 0.63% for money market deposit accounts and 0.07% for interest checking. Competitive online accounts often pay several points above those averages — compare dated issuer pages rather than the average alone. See our best high-yield savings accounts and best money market accounts, and our HYSA vs money market account guide.
15. A small buffer still leaves most households short of three months
Clearing the $400 test (63%) is a lower bar than holding a three-month fund (55%). Building from a small cash cushion to several months of expenses is the gap most of the SHED data describes.
16. Retirement accounts are sometimes tapped for emergencies
In the prior 12 months, 5% of non-retired adults borrowed from retirement accounts, 4% cashed out funds, and 8% reduced regular contributions. Collectively, 14% of non-retirees took at least one of those steps. Non-retirees with a major unexpected expense were more likely to borrow, cash out or cut contributions (Table 30). Tapping retirement savings can help in a crisis and may reduce long-term security.
How to put these numbers to work
- Pass the $400 test first. If you would need a credit card carry-balance or a payday product for $400, start there.
- Then aim for three months of essential expenses. Only 55% of adults say they have that rainy-day fund.
- Keep the cash liquid and FDIC-insured if you use a bank deposit. Compare current APYs on issuer pages; national averages are low.
- Separate emergency cash from CDs. Lock rates only for money with a known timeline — see CD statistics 2026 and savings account statistics 2026.
- Get a rate alert on this page if you want a heads-up when we publish new rate guides.
Methodology and sources
- Federal Reserve Board, Report on the Economic Well-Being of U.S. Households in 2025 (SHED), Savings and Investments chapter and executive summary, May 2026.
- FDIC, National Rates and Rate Caps, September 2026.
- Internal links for navigation only: best high-yield savings, best money market accounts, HYSA vs money market, CD statistics, savings account statistics. We do not cite our own pages as sources of facts.
For how much cash families hold by age, see average savings by age.
Frequently asked questions
What percentage of adults can cover a $400 emergency expense?
In the Federal Reserve's 2025 Survey of Household Economics and Decisionmaking (SHED), 63% of adults said they would cover a hypothetical $400 expense exclusively using cash, savings, or a credit card paid off at the next statement. That share was unchanged from 2024 but down from 68% in 2021.
How many adults cannot pay a $400 expense at all?
Twelve percent of all adults said they would be unable to pay a $400 expense by any means, down slightly from 13% in 2024, per the Fed's 2025 SHED report published May 2026.
What share of adults have a three-month rainy day fund?
In 2025, 55% of adults said they had set aside money for three months of expenses in an emergency savings or rainy day fund — unchanged from 2024 but down from a high of 59% in 2021.
How does emergency savings vary by income?
Among adults with family income under $25,000, 21% said they had savings to cover three months of expenses, versus 39% at $25,000–$49,999, 55% at $50,000–$99,999, and 75% at $100,000 or more (Fed SHED 2025, Table 27).
Where should I keep an emergency fund?
The Fed measures whether people have a cash buffer; it does not recommend a specific product. Many savers use an FDIC-insured high-yield savings or money market account so the cash stays liquid and can earn more than the national average savings rate. Confirm current APYs on each bank's own page. This is not financial advice.
How is the Fed's $400 question defined?
Respondents who would cover the expense exclusively with cash, savings, or a credit card paid off at the next statement are counted as paying with "cash or its equivalent." Others said they would borrow, sell something, or could not pay. The survey was fielded in October 2025; the report was published May 2026.